Asia watchers will be paying particular attention to the South China Sea in the coming weeks, after the installation of a Chinese oil rig in disputed waters touched off intense protests in Vietnam. Nevertheless, Chinese leaders have a “clear realist strategic logic” in pressing these territorial claims, explains Andrew Gilholm, Control Risks’ head of Asia-Pacific analysis, in a new podcast . No party involved wants these disputes to escalate to open conflict, but each country appears unwilling to budge, which could lead to economic retaliation that could diminish the business environment in the region.